CP aims to boost chicken sales

Baby chickens worth a total of US$2.73 mln will be sold to farmers by animal feed producer CP Cambodia this year, according to the company's VP.

Wittaya Kreangkriwit said that CP plans to sell 3.9 mln chicks to 300 farming families in Kandal and Kampong Speu provinces at approx. US$0.70 each. Then, due to an agreement, the farmers are obliged to buy animal feed from CP to nourish the chickens to maturity.

In 2009, the business sold 3 mln 21-day-old chicks at $0.50 each, making $1.5 mln in revenues, reports state.

“We hope that our sales strategy will be successful, because we believe the number of people raising chickens in Cambodia is increasing,” said Wittaya.

Reduce imports

Chhay Sok Huon, president of Chicken Farming Association, which represents 50 chicken farmhouses in Kandal and Kampong Speu provinces, agreed that demand for eggs and chicken meat has increased. “But we want the company to sell chicks at a lower price to allow farmers to benefit more and expand. This would ensure there is a sufficient supply of eggs and chicken meat to markets, reducing the need for imports,” he said, adding that about 700,000 eggs and hundreds of kgs of chicken are currently imported from Vietnam and Thailand into Cambodia.

Kao Phal, director of the Department of Animal Health and Production, said that such imports have caused problems for local farmers, due to market competition.

“We are trying to reduce the quota of egg imports and meat from other countries gradually in order to encourage domestic animal farming,” he said.

A report from the department showed that in 2009 Cambodia raised about 20 mln chickens and ducks, compared to 16 mln in 2008.